How a Napa business leader led the downtown’s transformation from sleepy to vibrant

Craig Smith never quit anything before, but when he decided on a whim to quit his job nearly three decades ago, he took a path that led him to oversee the transition of downtown Napa from a half-vacant, flood-prone location to a tourist draw with enough charm to draw the locals.

“This is so much more than a job,” said Smith, who in February will mark 26 years at the helm of the 300-member Downtown Napa Association. “For me, this is near and dear to my heart.”

Now, the 70-year-old Smith is starting to plan his retirement.

How it started

Raised in Greensboro, North Carolina, a life in California was not remotely on Smith’s radar after he graduated from the University of North Carolina at Chapel Hill with his bachelor’s degree in business administration and management.

Smith entered the retail industry, working for about four years as a district manager for The Gap. In 1982, the clothing retailer promoted him to work as a corporate recruiter at its then-headquarters in San Bruno on the San Francisco Peninsula.

It didn’t go well.

“Within two years, 10 of us had been fired,” Smith said, stating The Gap had a habit of rewarding its top district performers by promoting them to corporate positions they weren’t qualified for. “They were wrong in bringing me out and they were right in getting rid of me.”

The path to Napa

Smith went on to work for six years at the American Lung Association in Oakland before landing in Napa — in an unexpected way.

“I’d fallen in love with a woman who lived in Napa, and I was coming to Napa all the time,” said Smith. Even after he moved in with his now-wife, Denise Layton, he continued to commute to Oakland.

Then one day Smith made a life-changing decision that led to his departure from the American Lung Association.

“I remember exactly where I was. I was crossing Main Street at Downtown Joe's on my way to a Mexican restaurant that has since closed,” Smith said. “It was pouring down rain, I was in the middle of the intersection, and I stopped and I thought, ‘I'm going to quit.’ I hadn't quit a job without anything else under my belt since college.”

Heading downtown

One day, Smith was thumbing through the classified ads and saw a part-time opportunity at the Downtown Napa Association.

“They were looking for somebody who had a retail background, had worked for nonprofits, and had also helped cities craft ordinances,” he said. “To this day, I don't know why they wanted that, but I when I was with the lung association … I was one of the guys who used to go to city council members and lobby them for their cities to go smoke-free.”

Smith was hired for what was to be a year or two at the most, but he signed on full time before the first year ended. That was in 1996.

The association at the time had a budget of $80,000 and was in debt, Smith said, plus a local business was looking for reimbursement after an unfortunate incident that happened at a downtown Napa event.

“A porta-potty company was chasing them because somebody at one of our events lit a porta potty on fire,” Smith said. “So that was the thing that I inherited.”

Today, the Downtown Napa Association has an annual budget of about $1 million, funded by a percentage of sales tax paid by the individual businesses, he said. The organization’s funding does not include the transient occupancy tax hotels collect.

“We represent hotels tangentially because they are part of our community and fabric,” Smith said, adding that most have a retail component.

Growing pains

Smith represents about 300 businesses in the downtown district — from restaurants, shops and stores to professional services. He said downtown’s commerce is made up of about 50% locals and 50% tourists.

Today, downtown Napa looks a lot different than it did when Smith arrived in the mid-’90s.

“When I got here, half the stores on First Street were empty,” Smith said. “The other half were all mom-and-pop stores.”

Rent at the time went for 50 cents a square foot. That’s a lot different from today, when it averages $5–$10 per square foot, he said.

“In the old days, the district's whole reason for being might be to put on the Christmas parade or the sidewalk sale,” he said, noting that grew over the years to events that involved closing the streets, sometimes up to six blocks or more.

It got to a point where businesses began to balk.

“Virtually everything we did resulted in an increase in sales until we reached the point where there were no vacancies on the street,” he said, "so allowing traffic to go down (First Street) became an impediment.”

The Main Street Reunion Car Show, which closes eight blocks, still happens every year but rather than clog up First Street, it takes place on the ancillary Third Street.

“I constantly survey the merchants to see how an event is doing,” Smith said. “When we make changes, it’s totally based on what they say.”

In 1998, Napa began to transform, Smith said, thanks to an elaborate flood-control project that put an end to the city’s reputation as being prone to floods. It has undergone 21 serious floods since they started being recorded in 1862, according to the County of Napa’s website.

“Developers started buying properties and prices started going up, and all of a sudden those mom-and-pop shops that were paying 50 cents a square foot couldn't afford the rent,” he said. “They started moving out and businesses that could afford it started moving in.”

Reputation

Smith’s job requires him to strike a delicate balance between representing the best interests of the hundreds of diverse businesses in downtown Napa while also working closely with the city. It’s something Mary Beth Herman, a longtime friend and retired colleague, commends him for.

“It can be challenging when the city's focus is different than what the businesses need or want — and that's who he represents,” said Herman, who retired from Napa Valley Marketplace, a community magazine mailed monthly to businesses and households. “I think he's negotiated that pretty well. … And I think he does it with honoring the people who are trying to make a living and be successful in their businesses.”

Connie Anderson knows Smith in two capacities, as the owner and publisher of Napa Valley Marketplace and as the current president of the Downtown Napa Association’s board of directors.

She described Smith as a good listener and thoughtful in the way he executes his job.

“I think he's been very, very effective,” Anderson said. “The downtown has grown and changed so much since he's been there, but he has been instrumental in making it happen and making it happen successfully.”

The messenger

Smith said it’s important to make sure Napa’s downtown businesses stay informed and current with the times.

He also noted it’s essential the businesses stay in touch with each other. That was key during the pandemic.

“During COVID, I still came to work every day, and I did a boatload of messaging,” he said, keeping everyone up to date, from what the CDC was saying to the latest actions in the county and the state.

Succession plan

In January, Smith will cut his schedule to 60% while he transitions his successor, who will work half-time until Smith officially retires on Jan. 1, 2024.

“I think it’s time, it’s time to move on,” he said. “And it's really important to me that the person who takes my place is prepared.”

That person will be Bill LaLiberte, whom Smith described as a perfect fit.

LaLiberte, who has lived in Napa for 22 years, has previously served on the association’s board of directors, including as president, and managed the Oxbow Public Market for nearly a decade. He also owns a property management company, which he said he’ll step away from when he takes over for Smith.

When asked what he views as Smith’s biggest accomplishment, LaLiberte said it’s the progression of the downtown over the last 5, 10 and 15 years, and the pivot from being an event-driven organization to a marketing-driven organization.

LaLiberte said he is looking forward to the beginning of the transition on Jan. 1.

And there will be discussions about what has worked in the past and ideas for the future.

“When somebody leaves,” Smith said, “you lose institutional knowledge, so I wanted to make sure that I was here for a long period of time to bridge that gap.”

He’s also not leaving Napa.

“I'll still be around and still available to them,” he said.

Cheryl Sarfaty covers tourism, hospitality, health care and employment. She previously worked for a Gannett daily newspaper in New Jersey and NJBIZ, the state’s business journal. Cheryl has freelanced for business journals in Sacramento, Silicon Valley, San Francisco and Lehigh Valley, Pennsylvania. She has a bachelor’s degree in journalism from California State University, Northridge. Reach her at cheryl.sarfaty@busjrnl.com or 707-521-4259.

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